No More Audit Nightmares: TM1 Audit-Readiness Checklist for IBM Planning Analytics (TM1) Models

Why TM1 Audits Turn into Last-Minute Fire Drills 

It's 8:30 AM on Tuesday when your external auditors request documentation for your IBM Planning Analytics (TM1) models. Your stomach drops. Why? The developer who built them left six months ago, documentation is scattered across SharePoint folders, and you have three days to respond before your 10-K filing gets delayed. 

Sound familiar? KPMG's 2024 survey shows only 29% of organizations feel audit-ready, meaning majority are underprepared (KPMG, 2024). This post will equip you to join that audit-ready minority. 

The Hidden Costs of Inaction 

• 40% increase in external audit fees 
• 2-3x longer audit cycles (Your team working weekends for weeks) 
• Higher risk of compliance penalties (Average of $50K+ per finding) 
• Higher risk of material weakness findings 

Stay Ahead with This Checklist 

This post provides a practical 5-pillar checklist to make your TM1 environment audit-ready year-round. 

What You'll Achieve: 

✔ 90% faster audit preparation 
✔ 70% faster version control  
✔ 63% less manual documentation work 
✔ 60% ROI from reduced penalties  
✔ Full SOX 404 compliance 

Join the ranks of top FP&A teams by shifting from reactive scrambling to proactive control. 

The 5-Pillar TM1 Audit Readiness Checklist 

A successful audit process provides auditors with exactly what they need, when they need it. Our checklist helps you to fulfil that through 5 key pillars: 

1. Documentation Foundation 
2. Process Controls & Change Management 
3. Access Controls & Security Documentation 
4. Testing & Validation Framework 
5. Continuous Audit Readiness 

Each section explains the purpose, steps, and required documentation. 

Download the full 30-Point PDF Checklist at the bottom of this post.
It reduces audit preparation time by at least 16 hours per cycle. 

1. Documentation Foundation 

Auditors aren't TM1 specialists, so they need clear evidence that your models maintain data integrity and follow proper controls. Poor documentation forces them to dig deeper, extending your timeline. 

1.1 Purpose and Risk Classification 

Maintain a centralized register that links each TM1 model to its financial reporting impact and risk level. This register should include: 

• Clear business purpose in plain, non-technical language. 
• Risk classification based on its impact on financial reporting (e.g., Critical, High, Medium, Low). 
• Financial statement linkage to specify which financial statement line items the model directly influences. 
• Usage frequency and update schedule 

1.2 Data Source Documentation and Lineage 

Document how data flows from its original source to the final output in TM1. This should include: 

• List of data sources feeding each critical model (ERP systems, CSV imports, manual inputs) 
• Transformation logic and business rules. 
• Data lineage diagram that show how raw data becomes final outputs. 
• Audit trail of who can modify data sources and transformation rules 

1.3 Model Naming and Organization Standards 

Apply standardized naming conventions to ensure clarity and consistency for auditors. Recommendations include: 

• Revenue models: Example – RevenueForecast_FY25_Final 
• Cost models: Example – CostAllocation_Q1_Approved 
• Naming structure: Each name should clearly communicate its purpose, relevant time period, and approval status. 

2. Process Controls and Change Management 

Auditors scrutinize how you control changes to financial models because uncontrolled changes directly threaten financial reporting reliability. Poor change management is the #1 cause of TM1-related audit findings. 

2.1 Formal Change Control 

Document the approval process for any model changes, including: 

• Change Request Submission 
• Change Impact Assessment 
• Change Approval 

2.2 Calculation Logic Documentation 

Document calculations clearly for auditors. Ensure you include: 

• Key assumptions and their sources 
• Examples of calculations with sample inputs and expected outputs 
• Manual adjustments and overrides permitted 
• Validation processes for assumption accuracy 

2.3 Process Documentation for Automated Tasks 

Document your automated processes in plain language. Include: 

• Business purpose in plain language 
• Data sources and update frequency 
• Who can modify the process 
• Error handling and notifications 
• Last successful run date 

3. Access Controls and Security Documentation 

Security documentation is required for SOX compliance. Auditors need to verify that only authorized personnel can modify financial data and that you have proper segregation of duties to prevent fraud. 

3.1 Security Model and Roles 

Document viewer and editor controls, and when they can do so. This includes: 

• Security principles and hierarchy design 
• Group membership rosters with business justifications 
• Capability assignments by group (who can see/modify what) 
• Segregation of duties implementation 

3.2 Administrative Access Controls 

Document and justify all administrative access, including: 

• List of users with administrative privileges 
• Business justification for each admin user 
• Monitoring and review of admin activity 
• Process for temporary elevated access 

3.3 Data Control Processes 

For manual adjustments, document every step of data control. This includes: 

• Approval requirements for manual adjustments 
• Validation rules to avoid wrong entries 
• Audit trail of manual changes 
• Review processes for significant inputs 

4. Testing and Validation Framework 

Auditors need concrete evidence that your models produce reliable, accurate outputs. Without documented testing procedures, they cannot rely on your TM1 calculations for financial statement purposes. 

4.1 Test Cases for Key Calculations 

Document validations, independent verification of calculations, and treatment of unusual scenarios. 

4.2 Data Reconciliation Processes 

Document your reconciliation points, including: 

• Reconciliation points between TM1 and source systems 
• Responsible parties for each reconciliation 
• Acceptable variance thresholds 
• Process for resolving discrepancies 

4.3 Performance Monitoring 

Document performance requirements, including: 

• Performance expectations for critical processes 
• Monitoring for processing failures 
• Business continuity procedures 
• Recovery time objectives 

5. Continuous Audit Readiness 

The most audit-efficient organizations treat documentation as an ongoing discipline, not a quarterly scramble. This approach reduces audit preparation time by 90% and virtually eliminates surprise findings. 

5.1 Clear Responsibility Assignment 

Assign clear responsibility for keeping documentation up to date. This includes ownership for when: 

• New models are developed 
• Existing models are modified 
• Business processes change 
• Regulatory requirements evolve 

Responsibility Framework Example: 

5.2 Scheduled Reviews 

Review documentation systematically to spot gaps in advance. This includes: 

• Quarterly reviews of critical model documentation 
• Annual comprehensive assessments 
• Pre-audit readiness checks 
• Post-audit improvement planning 

5.3 Leverage Automation 

Consider tools like Omni to instantly generate accurate and current documentation. 

Manual vs. Automated Documentation: ROI Analysis 

These ROI metrics are based on actual client outcomes extracted from finance transformation projects we have undertaken at ITLink. 

Your Next 48 Hours: Audit-Readiness Action Plan

To avoid last-minute risk exposure, start preparing now. 

With year-end audits approaching, finance teams who start documentation now will enter 2026 with confidence. 

Why Clients Choose Omni 

Omni delivers: 
🕒 Instant audit-ready documentation 
📄 Real-time updates from your TM1 environment  
✅ SOX compliance  
💡 Clear visuals for auditors and executives  
🌍 Secure on-premise deployment 

Trusted by finance leaders across top organizations, from mid-scale to Fortune 500. 

Join them and make the switch. Your future self (and your auditors) will thank you. 

See the 10-Minute Documentation Action 

Watch this 3-minute demo to see Omni map your entire TM1 model: Cubes, rules, processes, and dimensions, without the manual grind. 

No wasted hours. No margin drain. Just precision. 

Turn your TM1 documentation from a burden to an asset that works for you year-round. When auditors call, you’ll be ready.